- Bid valid until March 13; PSO must respond before the deadline expires.
- Agricultural machinery is expected to increase fuel consumption.
- Diesel stocks are sufficient for 20 days, demand increases with the harvest season.
Amid tensions in the Strait of Hormuz, Pakistan State Oil (PSO) has received bids from international traders for two cargoes of gasoline weighing 55,000 tons each with a rating of 92 RON as the country works to secure supplies amid fluctuating global fuel prices.
Sources indicate that for the first cargo, OQ Trading submitted the lowest bid with a Cost and Freight (CFR) premium of $17.8 per barrel. Be Energy SA offered a CFR premium of $22 per barrel, while Vitol Bahrain EC recorded the highest premium of $39 per barrel. barrel, The news reported.
For the second cargo of the same quantity, only two bidders participated. Once again, OQ Trading emerged as the lowest bidder, offering a CFR premium of $19.5 per barrel, while Be Energy SA submitted a bid of $23.5 per barrel. Officials noted that the lowest bids for both cargoes are still considered relatively high.
Officials said the bids were received as per the rules of the Public Procurement Authority (PPRA), which regulates public procurement in Pakistan. However, the authorities noted that the strict tendering procedures sometimes contribute to higher procurement costs, especially during periods of volatility in international energy markets.
The bids remain valid until March 13, which means that the PSO must respond to the bidders and finalize its decision before the deadline.
Sources also revealed that PSO did not receive any bids for a high-speed diesel cargo as the negotiators were quoting a CFR premium of around $80 per tonne. barrel, which was considered too high. Due to daily fluctuations in international oil prices, suppliers were reluctant to submit competitive bids within the validity period.
Meanwhile, Total Parco Pakistan Limited, an oil marketing company, has arranged a cargo of Euro-II specification diesel at a premium of $20 per tonne. barrel and is seeking government approval for the import. However, the PSO typically imports Euro-V specification diesel, which meets stricter environmental standards.
Officials said Pakistan’s diesel stocks are currently sufficient for about 20 days, but demand is expected to increase next month with the start of the harvest season, when agricultural machinery increases fuel consumption significantly.
In view of the expected increase in demand from the agricultural sector, the authorities stressed that arranging diesel supplies at affordable prices will be crucial to ensure uninterrupted agricultural operations and maintain stability in the domestic fuel market.
